How Does Nafta Affect The Economy

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In 1994, the United States, Canada, and Mexico, signed and established the North American Free Trade Agreement (NAFTA) which created a trilateral free-trade zone in North America that eliminate most tariff and non-tariff barriers on trade and investment between the three nations. The North American Free Trade Agreement purpose is to encourage economic activity and sets the rules of trade and investment between the three nations. NAFTA especially impacted the agriculture sectors of each country, but tariffs were also reduced on items like automobiles and textiles. With the North American Free Trade Agreement came into effect, the three countries laid a strong foundation for economic growth, job creation, better prices, better selection in consumer goods, increases wealth and competitiveness, delivering real benefits to families, manufacturers, farmers, workers, and consumers.
It is impossible to quantify precisely the effect NAFTA has on economic shifts and very difficult to determine it effect on economic growth in the United States. The winners and losers under NAFTA depend on the type of sector, company size, and geographical location. For instance, large agriculture businesses, planes, automobiles, appliance makers, energy corporations, large multi-national companies, and capital resources have benefited from NAFTA’s protected investment and cheap labor. These industry …show more content…

Some states experienced heavier lost than other, including the state of Georgia. Georgia is a state with high concentrations of textiles and apparel, motor vehicles, computer and electrical appliances industries that subsequently have expanded rapidly in the maquiladora zones in Mexico since the implementation of NAFTA. The hardest hit industry in the state of Georgia is the textiles and apparel industry, which is very highly concentrated in the

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